AI inference startup Fal completes $1.3 billion funding round at a $16 billion valuation

Fal, a San Francisco-based AI inference startup that hosts and runs AI video, image, and audio models, raised $1.3 billion in a Series F round led by Bessemer Venture Partners with participation from Nvidia, Sound Ventures, and T. Rowe Price, valuing the company at $16 billion—double its $8 billion valuation from April. Fal also disclosed a previously unreported Series E round led by Sequoia Capital, bringing the combined E and F raises to $1.65 billion. Bloomberg-reported annualized revenue has already surpassed $800 million this year. The round underscores continued investor appetite for AI infrastructure—specifically inference and model-hosting layers—even as valuations for AI startups climb rapidly. What to watch next: how Fal deploys the capital to scale inference capacity and whether its revenue growth keeps pace with its doubled valuation.